With 60,000-plus Hong Kong-related enterprises in the Pearl River Delta, Hong Kong can become the region's research hub for technology development.

This was the message from Secretary for Commerce, Industry & Technology John Tsang speaking at the opening ceremony of the City University 20th Anniversary Applied Research Exhibition & Concurrent Seminar today.

He said the Government has formulated a new strategy of innovation and technology development to capitalise on these strengths and respond to the changing economic landscape.

New strategy

The strategy emphasises:

* the identification of key technology focus areas where Hong Kong has competitive advantages for optimal use of resources to create greater impact;

* the adoption of a demand-led, market-driven approach in driving the innovation and technology programme to ensure that the investments are relevant to industry and market needs;

* the close involvement of the industry in defining the key focus areas and other stages of innovation and technology development;

* the opportunities presented by CEPA utilising the production base in the Greater PRD as the platform for developing our applied research and development (R&D) and commercialising applied R&D deliverables; and,

* the strengthening of co-ordination among various technology-related institutions and the industry for enhanced synergy and impact.

To promote local research and development activities, a series of programmes has also been established. Among the more important initiatives is the $5 billion Innovation & Technology Fund. Over the past five years, it has supported more than 600 applied R&D projects at a total funding of $1.6 billion.

Science Park under construction

Turning to technology infrastructure, Mr Tsang said the construction of Phase II of the Science Park is under way and the Government has established the Applied Science & Technology Research Institute to take on quality R&D for transfer to industry, and to help stimulate the growth of the technology-based industry in Hong Kong.

On the new strategy for innovation and technology development, he said it is important to identify technology focus areas and set up research and development centres in selected focus areas.

The objective is to improve the relevance of applied R&D to the needs of the industry and make the best use of resources in promoting technology development in Hong Kong.

"In the past two months, we have received useful input from our stakeholders, including our universities. Most of the feedback received supports the direction of our proposed new strategy," Mr Tsang said.

"The Government is now carefully examining the detailed comments and suggestions received before we take the matter forward. We aim to reach a conclusion in the near future regarding the selection of the focus areas and the invitation to host the R&D Centres."